Question

The difference between the compound interest and simple interest on a sum of money at

rate of 10% per anurn for 2 years is Rs 50. The Principal amount is

Answer 1

SIMPLE INTEREST(SI)
$\frac{p \times r \times t}{100}$
R=10 %
P=₹50
T=2years by doing this SI will be ₹10
COMPOUND INTEREST(CI)
Formula for amount of compound interest is
A=
$a = p(1+ \frac{r}{100} )^{n}$
After doing this A will be ₹55
Then CI = A - P
=55 - 50
=₹5
DIFFERENCE = 10 - 5
= ₹5

Answer 2

Answer:-

Given:- r=10%(rate of per annum)

n=2year

Difference=50₹

Formula:- Difference/(r)^2

Solution:- putting the value on formula.

50×100×100/10×10

We are taken two times 100 because of the value of r is twice, i.e r^2.

After that, 50*100= 5000

Thus, the principle amount is 5000₹.